Plastic2Oil Inc (PTOI)

[Zardiw]

The Low Down Naked Skinny: PTOI/JBII SEC Complaint:

Summary: This WHOLE thing is based SOLELY on a matter of OPINION of the value of some Media Credits. That's IT. That's ALL it's about. This MATTER OF OPINION. No big fraud like some are making it out to be.



PTOI used to be JBII (Back when all this bullshit happened)

Latest Update:

Domark’s CEO (The Media Credits were bought from Domark) and “the consultant” stated that the SEC commented on the media credits on Domark’s or Sports Quest’s SEC filings and the valuation of $10 million, which was ultimately cleared with the SEC.

https://viewer.zoho.com/docs/zUadbbg (Court Filing. Link is DOA I guess. You can research it on Pacer if you're really interested.)


JBII Response to sec ALLEGATIONS:

Contrary to the allegations made by the SEC, the Company believes that its officers acted in good faith in valuing the media credits discussed in the complaint, based on the information available at the time.

JBII is profoundly disappointed by the erroneous allegations of fraud contained in the civil lawsuit filed by the Securities Exchange Commission

looks forward to vigorously defending itself in court, where the Company believes it will prevail on the merits

The Company is proud of its recent successes and will continue to focus on building out its business growth plan with its corporate partners.

http://www.sec.gov/litigation/complaints/2012/comp22220.pdf

1. Why didn't the SEC settle this yet? Latest 8K indicates there is still a possibility for settlement.

After all the company took immediate steps to bow to the SEC:

Shortly after obtaining the approximately $8.4 million in financing the company
issued a public statement indicating its financial statements could no longer be relied upon due,
in part, to the erroneous valuation of certain assets on the balance sheet (i.e., the media credits,
among other things)

What are 'other things'...Is that a legal term? Why wasn't that defined if it actually represented something.

2. What are media credits?

They are prepaid credits which can be redeemed for advertising in radio, print, etc.
It's a matter of opinion as to their value. Obviously the company thought they had value:
They could have been used to advertise/promote Pak-It Products
Could be used to promote P2O
How does the SEC know they had little/no value?:

'completely worthless and needing to be written off entirely. the media credits had little to no real value. '

and

'no probable economic benefit to JBI from the media credits as the ads had limited distribution and would be unlikely to
increase sales and profits, '

What gives them the right/ability to judge value? Is that part of their job description?

3.. Who exactly was harmed/defrauded?

The PIPE investors came in because of Plastic2Oil....not because of a media credit asset.
Any investors of JBII stand to make significant gains when P2O becomes commercially profitable.

4. And they want them to disgorge their 'ill gotten gains'.

These 'gains' were used to develop Plastic2Oil, not for any personal use. JBII Shareholders are the ones that 'gained'.

5. Why do they want to prevent Bordynuik and Baldwin from being officers of the company?

Does the SEC really believe that they are career violators?:

'unless enjoined will continue to violate,'

6. There are 14 claims. Why restate the exact same thing in all 14 claims of the document.

They really padded that claim to make it look stronger, cause it's actually a pretty weak claim.

7. Personality conflict between whoever instigated this at the SEC and the company?
Another issue/reason?

8. The timing.

Why file this with 30 minutes left for trading.
Doesn't the SEC themselves have a rule that significant news should be released during non-market hours?

9. The use of the term purportedly.

There's nothing 'purportedly' about JBII's Plastic2Oil Development

There's ample evidence that Plastic2Oil has been developed and is currently in commercial production, and selling large quantities of fuel

'purportedly involved in the research and development of a process designed to convert plastic waste into oil, known as “Plastic2Oil" or “P2O".'

10. Why go after JBII?

This difference of opinion as to the value of the credits doesn't seem like a very high priority issue.
Somebody made a lot of money on shorting
Seems the SEC was egged on by somebody who wanted to hurt the company
Did those people profit?
Seems certain people had advance knowledge of this. 'Friends' of the SEC?
JBII poses a threat to energy burners...Plastic has a high BTU count. Take that away and they lose money.
Big Oil? While JBII poses no direct competition (yet), the fact that lower priced fuel is available could affect market prices for oil.

11. And why no action against DOMK/Domark from whom they were bought....DOMK had these on the books at $10M??

12. Post by Brig:

"The SEC attorney leaked and conspired with certain persons in it's investigation of JBI....certain persons KNEW about the Wells Notice and the lawsuit prior to them being filed....posting about it all over the internet and bragging about JBI going down....so we'll just have the IG pull all communications of this SEC attorney and see who she has been talking to....that's right...SHE....certain persons even posted the attorney's name on public message boards.....Michelle (Michelle Giard Draeger )....no last name but that won't be hard for the IG to find out will it?....just investigatin'"

You can file complaints here:

https://www.reportlineweb.com/Welcome.aspx?Client=SEC_OIG
Or Call: 1-877-442-0854

13. Misc Info:

Who exactly IS 'Team Boston'?????????????????
An IHub Search will provide some *insight* into this

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Bottom Line: There seems to be a lot behind the scenes here that isn't exactly kosher.

If anybody has any other thoughts on this, pls respond to this post.

z